For Financial Professionals FAQ

What is a Life Settlement?

A Life Settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit. Depending on the state, a Life Settlement usually refers to a transaction involving an insured who is not terminally or chronically ill, generally over the age of sixty (60).

Does my client qualify for a Life Settlement?

If you have a client with a life insurance policy with a face amount of $100,000 to $25,000,000, have had a change in health and are over the age of sixty you may qualify for a Life Settlement.  In some cases we will consider a terminally ill insured under the age of sixty and insurance policies under $100,000.  The best way to find out if you qualify is to complete our Pre-Qualification Application from the link below.

How do you determine the price of a policy?

The price of an insurance policy is determined by a number of different factors which include: the age and medical impairments of the insured, the cost of premiums payments to keep the policy inforce, the type of insurance policy and the rating of the insurance company.

What types of policies do you buy?

The most common types of policies that we purchase are universal life, survivorship, whole life, term and variable life.

What are some of the reasons why my client might consider the sale of my policy?

There are several reasons an insured may want to sell their insurance policy which include the following:
– The policy is no longer needed or wanted
– Premiums payments have become too expensive
– You may needs funds to help pay for medical costs
– Your estate planning needs may have changed


Are there costs involved?

There are no out of pocket fees for the financial professional or the seller.

Does my state regulate the Life Settlement transaction?

Life Settlements are regulated by state insurance departments. Some states have enacted statutes and laws addressing the sale of life insurance policies and others do not regulate the transaction at all. Of those states that regulate the transaction, FMLS is registered or licensed to transact life settlements in almost all jurisdictions.

Are you properly licensed in multiple states?

Yes, FMLS is currently licensed or in the process of obtaining licenses in 36 states.  For more information click here.